Marketing Strategy PDF
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Marketing Strategy ToJane Thewindbeneathmywings Marketing Strategy The Difference Between Marketing and Markets Third edition Paul Fifield AMSTERDAM(cid:2)BOSTON(cid:2)HEIDELBERG(cid:2)LONDON(cid:2)NEWYORK(cid:2)OXFORD PARIS(cid:2)SANDIEGO(cid:2)SANFRANCISCO(cid:2)SINGAPORE(cid:2)SYDNEY(cid:2)TOKYO Butterworth-HeinemannisanimprintofElsevier Butterworth-HeinemannisanimprintofElsevier LinacreHouse,JordanHill,OxfordOX28DP,UK 30CorporateDrive,Suite400,Burlington,MA01803,USA Firstedition1992 Paperbackedition1993 Secondedition1998 Thirdedition2007 Copyright#1992,1998,2007,PaulFifield.PublishedbyElsevierLtd.Allrightsreserved TherightofPaulFifieldtobeidentifiedastheauthorofthisworkhasbeenasserted inaccordancewiththeCopyright,DesignsandPatentsAct1988 Nopartofthispublicationmaybereproduced,storedinaretrievalsystem ortransmittedinanyformorbyanymeanselectronic,mechanical,photocopying, recordingorotherwisewithoutthepriorwrittenpermissionofthepublisher PermissionsmaybesoughtdirectlyfromElsevier’sScience&TechnologyRights DepartmentinOxford,UK:phone(þ44)(0)1865843830;fax(þ44)(0)1865853333; email:permissions@elsevier.com.Alternativelyyoucansubmityourrequestonlineby visitingtheElsevierwebsiteathttp://elsevier.com/locate/permissions,andselecting ObtainingpermissiontouseElseviermaterial Notice Noresponsibilityisassumedbythepublisherforanyinjuryand/ordamageto personsorpropertyasamatterofproductsliability,negligenceorotherwise,orfrom anyuseoroperationofanymethods,products,instructionsorideascontainedinthe materialherein. BritishLibraryCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary LibraryofCongressCataloguinginPublicationData AcataloguerecordforthisbookisavailablefromtheLibraryofCongress ISBN:978-0-7506-5675-7 ForinformationonallButterworth-Heinemannpublications visitourwebsiteathttp://books.elsevier.com PrintedandboundinTheNetherlands 0708091011 10987654321 Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Prefacetothethirdedition vii Prefacetothesecondedition ix Prefacetothefirstedition xi Introduction 1 I.1 Whatismarket(ing)? 1 I.2 Whatisstrategy? 9 I.3 Whatismarket(ing)strategy? 12 I.4 Theapproachofthisbook 19 PartOne–PreparingfortheMarket(ing)Strategy 27 1 Theinternalbusinessdrivers 29 1.1 Personalvaluesofthekeyimplementers 29 1.2 Themission/leadership 31 1.3 Shareholdervalue 33 1.4 Long-termfinancialobjective 35 1.5 Otherstakeholders’requirements 38 1.6 Thevision 40 2 Theexternalenvironment 43 2.1 Customerandmarketorientation—theculture 44 2.2 Theenvironmentaudit 44 2.3 Opportunitiesandthreats 54 2.4 Strengthsandweaknesses 74 2.5 Competitoranalysis 78 2.6 Assessingourcurrentposition—aconclusion 82 3 Thebusinessstrategy 87 3.1 Thefinancialhurdles 89 3.2 Thebusinessobjective 90 3.3 Businessstrategy 94 3.4 Competitivestrategy 97 3.5 Sustainablecompetitiveadvantage 104 vi Contents PartTwo–DevelopingtheMarket(ing)Strategy 113 4 Frombusinesstomarket(ing)strategy 115 5 Themarketobjectives 119 5.1 Theplanningperiod 120 5.2 Whatmakesagoodmarketobjective? 120 5.3 Usingmarket(ing)objectives 122 6 Developingthemarket(ing)strategy(SCORPIO) 127 6.1 Industryormarket? 135 6.2 Thecustomer 146 6.3 Segmentationandtargeting 164 6.4 Positioningandbranding 181 6.5 Customerretention 203 6.6 Organization—processesandculture(withHamishMackay) 218 6.7 Offerings 238 PartThree–FromMarket(ing)StrategytoTactics 271 7 Makingithappen 273 7.1 Marketplans 275 7.2 Marketcontrolsystems 276 7.3 Strategyevaluation 278 7.4 Identifyingbarrierstoimplementation 285 7.5 Identifyingdriversforchange 290 7.6 Usingthesystem 292 Epilogue 301 Appendix:TheStrategychecklist 305 Index 311 Preface to the third edition Thefirstmethodisthatofaschemerandleadsonlytomediocreresults; the other method is the path of genius and changes the face of the world. NapoleonBonaparte Writingthispreface,thefirstthingtosayis,thisthirdeditionhasbeenalongtime coming, and it’s grown in the six years that it’s taken to write. There are many reasonsforthis,notleastthedevelopmentoftheSCORPIOapproach,whichhas grownthroughusewithclientsanddevelopingrealmarketstrategies.Everytime Iusedit,thebetteritseemedtowork,butitalwayschangedabit—ifIputitinto print it would be out of date, wouldn’t it? By the time SCORPIO had ‘settled down’,itwasfullofreallygoodstuffbuttherewasalotofit—anditwouldentaila lot of writing and where was the time? But, then publishers and past readers stoppedaskingwherethenewbookwas—andthatmademeworry,sohereitis. Also, apart from the ego and the new position as Visiting Professor at Southampton University, there is another reason that spurred this edition on, thereasonwhyallthewaythroughthebookyouwillfindtheterm‘market(ing) strategy’ being used: the increasing danger of the marketing profession falling intomediocrity.Marketingwasalwaysintendedtobetheco-ordinatingactivity designedtoidentify,anticipateandfocustherestoftheorganizationoncustomer needs. This is a far, far bigger job than producing the advertising and the brochures, but apparently one that some marketers feel hesitant to take on. Marketingisallaboutthe‘market’.If‘marketing’is(still)confusedwith‘market- ingcommunicationsandservices’,thenyoushouldrememberthatmarket(ing)in thisbookmeanssomuchmore. Likesomeofmyreaders,Iamgettingtothatstageinlife whenIstartcounting things — like the number of years I have been in market(ing), the number of companiesIhavemetwho(still)believethatproductsmakeprofits,thenumber oftimesIhavemetmarketerswhocomplainsobitterlyaboutmarketingnotbeing given the status it deserves in their organization. But counting does give perspective. WhenIstartedinmarket(ing),Ibelievedthatitwasjustaquestionoftimingand that, given the correct data (and encouragement), marketers and companies viii Prefacetothethirdedition wouldseethelightandbecomecustomerledandmuchmoreprofitable.Ah,the innocenceofyouth.Todayweseealandscapethathasnotchangedsignificantly over the years: finance departments still calculate product/service profitability; salesdepartmentsstilldictatepricesandpaymentterms;operationsstilldictate product/service availability; R&D functions still create new products and serv- icesbasedontechnicalfeaturesratherthancustomerbenefits. And too many marketing departments still busy themselves with writing brochures, organizingeventsandcreatingleadsforthesalesforce. On top of that, Philip Kotler turns up in Europe and says that it’s terrible that marketing really only seems to consist of one P, promotion. At the same time, universities and business schools are re-arranging their programmes so that issues that used to appear on marketing modules (such as segmentation) now appearonbusinessstrategymodules. Meanwhile, in business, new board positions are appearing; Commercial DirectorshavebeenaroundforawhilebuttheyarenowjoinedbytheBusiness DevelopmentDirector.Strangethattheuniversitiesandbusinessschoolshaven’t developeda‘businessdevelopment’modulefortheirMBAprogrammesyet. And too many marketing departments still busy themselves with writing brochures, organizingeventsandcreatingleadsforthesalesforce. Theresultisthatmarket(ing)isstillnotonthebusinessagenda.Market(ing)isstill not properly represented on the board. Customers are still not receiving the service they deserve. Organizations are still not as profitable as they should be andarestillnotdifferentiatedfromlowerpricedinternationalcompetition.There reallyisnowayofescapingtheresponsibility here—the‘marketing profession’ reallyonlyhasitselftoblame.Aslongastoomanymarketersconcentrateonthe brochures, events and sales leads, we allow market(ing) to be classified as an optional business activity — one that can be cut as soon as the recession comes aroundagain. But,thejobneedstobedone,customersarestillnotreceivingtheirdue—genuine customervalue.Thisbookiswrittenforanymanagerwhoispreparedtotakeup the market(ing) challenge, ‘real marketers’ included. But this book, and all the booksintheworld,canonlygiveyouthetoolstoact.Actingdependsonyou. PaulFifield Preface to the second edition Thefirsteditionofthisbookwaswrittenin1990/1991andwasmyveryfirstforay intotheworldofbooksandwritingonsuchascale.Overthelifeofthefirstedition, the world — and our marketplace — has undergone a number of radical changes, someofwhichIhavetriedtocaptureinthisrevisededition.Workingthroughthe revisions, I have been struck by the nature and scope of the changes that have affectedmarketingoverthepastsixyears.Drivenbythefundamentalchangesin society which we have and continue to witness, marketing as it is practised is changingfast.Thebuoyantmarketsofthe1980shavegivenwayto1990smarkets whicharemuchmorecompetitive,focusedandunforgivingoffailure.Timetoplan isaluxuryofthepastalthough,paradoxically,theneedtoplanandthinkstrate- gicallyismoreimportantthanever.Thesimultaneousneedtothinkstrategically and act tactically in today’s business environment of fewer resources and short- eningdeadlinesisworkingtoseparatethemarketing‘sheepfromthelambs’. The pace of change in marketing is such that at the moment we are still in the processofworkingouthowtosolvetoday’sproblems.Knowingthatyesterday’s solutions no longer work is the first step, finding the answers we need is still a voyageofdiscovery.Ihadhopedthatthissecondeditionwouldbemoreillumi- natingintermsofanswersthanithas,infact,turnedouttobe.Butworkingwith clients on a daily basis, it is apparent that markets are moving at a speed that renders‘new’ideasredundantataratethatmakestheminappropriateforabookof thisnature.Consequently,Ihavetriedtoconcentrateonthemindsetandattitudes ofthesuccessfulandpractisingmarketerrequiredinthelate1990s.Whenthereare no successful case histories to guide us, only a return to the fundamentals of marketingmakessense;fromherewewillhavetocreateourowncasehistories. Also,Istressagainthatthisbookisdesignedprimarilyfortheuseandguidance ofthepractisingmarketer.Sincewritingthefirstedition,Ihavespentanumberof years as seniorexaminer (diploma) at the UK Chartered Institute of Marketing. Thisrolehasbroughtme(andthisbook)intocontactwithmoreacademicwriters and educators. The response of many to this book’s approach to marketing worriedmeatthetimeandconcernsmemoreastimegoeson.Myapproachto marketinghasremainedlargelyunchangedovermorethantwentyyearsandis basedontheconstantlysupportedbeliefthat: (1) Long-termprofitisthenameofthegameand (2) Only satisfied customers (who come back for more)willproduce long-term profits.
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